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Home My WebLink AboutItem 4.02 StateMandateCostsr ~' To Obt~ S~te M~dated Cost Cl~g Si~ices ~rep~ed by: Fred M~sh, Fin~ce M~ag~) - ATTACltMENTS:; ...... Consultant Agreement with DMG Maximus RECOMM~NI)ATION': /;Q l-rl~--:Auth°Hze the City M~ager.m execute-a~e~ment withDMG FINANCIAL STATEMENT: - The proPOsed Agreement isa COntingent fee °pfion}'_underl Which-the ........ ;._ -:~ ":.-received-bY-h5~ City as reimbiirS~ment fo~- staie-i~andate(i~costs'i'~f~ a minimum of $500 but not to exceed $5,450~ -Sufficient funds are - :::-. ........ ' .- - - - available in-the FY:-.-1999-2000 Administrative. Services--Budget for- .(,~'"'DESCRIPTION: - The State mandiites'imder its COnStitution that the cities Perform various functions. for-the public, including providing abgentee ballots, notices of open meetings, quarterlY investment __ reports, and notification of stolen vehicles.~ The State allows for reimbursement requests to be made by -- cities to recover the costs of Performing these functions. ' ................... ..... D~g_ FY ._! ~98_-9_9, staff enlisted: DMG. Maxim~is; t0:~S-§i~t in ;th~ gathering 0f-diita ~'d-prepari~g the reimbursement claim for these state mandated costs~ With the assistance of DMG, the City received $72,936 in reimbursements fi:om__ ~_e _s._~}tt~ for_.~andgt_e_d.~os_tS.~duri_'~ng. FY 1998_r_9._9, $_46,595 of which were propos ntrad~g~eem'e_-niI p~-6vide th~;;-~erci~'~ fq~'F¥-} as '- ~"~ DMG ti~"Pre~ehted to Staffa ed co · to s 999-2000;' shown in Attachment 1. As pa~__ of the proposed contract, DMG will compile all information needed for the: claims, including cone?tio_n_ .of p_ro.~_arn- and.. co,t-in_fo _r;mafion_ fi:om C!ty~Departm _e~ts, DMG then: .... preiSareg the CleftS,--and informs City Staff of ang potential issues related tO the claim. After re'view by City Staff, DMG then sends the-claim in the St~ite'S required' format for reimbursement.- DMG will also respond to any.questions fi:om the Stme Controlter~s-Office/regarel!ng anyctaims that-wereflled/~_- __ ..-:~ :.~ ........... The propOsed contract costis based upon a.. contingent fee:option, under which the consultant wil!-b_~!l the o City for_ 3_0.'.~ pr_the amo~,~t ~:~ceiVedl .fr.°m the state as reimbursement for state_mandated costs,_ for a ..... mm~mum._ of-$500 but-~-not-t01 ex~eed~_$5,450J 'For. example if-hhe ~laims-which th6 CitY receives -re~bursement for are $10,000, the Consultant fee would be $3,000 (30% * $10,000 = $3,000),. COPTES TO: J. Bradley Burgess, DM.G_ - ................................. -- ....... i_- ...... ITEM NO ' - G:~iNANoExFP,.EDWORDh-nandatext cost contract 1999-2000.do¢ ........... - ..... _~ .... -- ~_ ~ -.- _. ...... The-exact. amount- o fetafmsis~undetermined and it is DMG,s':expefienee 'that it' wi'II: var3/'ffo~- ::-:::-It ~_S expected-that reimbursements_ will' be primarily re_lated 'to_' thef0ttowmg mandates:: Open-.Meetmg:~ct- Noticeii invesMent:- Re~c~rt~hg-Requir~m~s¢'"'~b-~entee- ballots;' and -VariOUs l~W-- ehf0r&meni rcpoi:tihg and~ainingzrequirements.-~__:-- _.-.-' :-'_ .... : ...... --:_ . :- ._ ': _: ..... :.. ~';r-.:--~.:_r." . ..... .:~ ......... It-is' recommended-:.that:_theCity-Council-'authorize'the Ci{-y-MaiS-~fg~f'.t6.' ~x'ecfi. fe"~'ff~-e~hi'~i, th. DMG...- MaXimus for state mandai~d cbst ~iaiff~ing-services.- -"' ~" £ .... ----_- . . . .- .... - --'. - . .__..:-?. '_-... .:. ~;: . -"l z} --'- ~¥<' F.-. '~"::. --:,..."9. -..': -. e.l '- - .... - .- .....:' ' '- * - _ ..... - ~: ...... ::: --? :~.: ~-~-:=..-:: :-: ...... ::--~::~.===i=,: Agreement to. Provide:-=-: ::!' :::::: =..=: ..... .= ~ .... . - ~S AG~E~T, entered Mto'~s ' ..... -- ~:~ffeefive imme~ately'by'~d be~een DMG-~~S ~ere~er "Co~t") ~d ~e Ci~ of Dubl~ Cere~er "Ci~"), ...... WHEREAS, Article XIIIB of the California State Constitution provides that cities may recover Costs associat_ed, with c _an'ying out programs mandated by ReState _of_Cali_fornia, .... ,WHEKEAS, the City. desires to obtain-maximUmu:eimbUrsement-for- costs incurred in. carrying _ o_ut St3te n/anda/ed_.pr-ograms~_ and has determined that enga~dng the COnsultant t° assist_ in the mandated cost claim preparation process is the most economical-and cost effective-means for preparing the City's state mandated-cost claims;--and · ~-R~As,. the" Consultant is staffed:, witi~_-p;rsi)-nnel 'knowled~eable :.and- experienced in determining the costs of governmental programs and in the submission of cost claims to the State - WHEREAS, the'City d~sires-'to engage th~ Consultant to assist in developing, submitting, and negotiating cost claims pertaining to state mandated programs: : - ' NOW~ THEREFORE, the parties hereto mUtually a~ree as follows: I. Scope of Services. ............. ... _ The Consultant shall prepare claims for reimbursable state mandated costs as provided - k. -" - Annual State Mandated Cost Reimbursement Claims ...... i . The Consultant shall prepare and file applicable act~_~! annual state mandated cost - :: ~ reimbursement claims for the 1998-1999 fiscal year and estimated claim(s) for the 1999- 2000 fiscal year. The fiscal year 1998-1999 actual claims to be filed are claims that are included in the State Controller's. Cl_aiming Instructions that pro~_d__e_, for timely filed -- ---:: -:-:- clai~§ t6 be-§ubifiift~d byJifi~zy 15~' 20002 .................. B.- All Other-Claims for Which Claiming Instructions Are Issued in FY 1999- .......... - _ -: 2000 With the exception of the claims in Scope of Services I.A. above, the Consultant shall prepare, submit and file on the City's behalf, all other eligible actual and estimated state mandated cost reimbursement claims for which State Controller Claiming Instructions are issued in the. 1999-2000 fiscal year. city of r)ubtin ...................... =__L- ........................ ATTACHMENT ~-- 2. - C0nsultant' ClaiTM Filing' Re~iiireni~nts ~e Co~t~t sh~l file ~ese clams to_ ~e extent ~at appropriate docmentation is -- - - '-:" a¢~iabi~' ~d verifiable md ~at cl~m mo~ts exceed $200 per cl~m. .... 3. --- Co~is and Method- 6f C°~n~-afi0n Scope of Se~ices 1.A. & 1.B. - Annual Claims and Ail Other Claims for ~ich Claiming Instructions Are Issued in FY 1999-2000 For ~e se~ices provided p~su~t to Scope of Se~ices 1.A ~d 1.B, ~e Ci~ a~ees to __ _ mam- of five tousad fora h~&ed fi~ dolt~s ($ 5,450). Pa~ent sh~l be made . ~om m0~es acm~ly received ~om ~e State res~g ~om ~e Com~mt's effoas. ~'~.. ~--.- ....... Mo~es received sh~l be defined' ~ pa~ents 'res~fihg ~6~ ~e ~o~t'S_ filing of .. cost cl~s listed in 8c0pe of Semic~s 1.A. md 1.B.- In ~e event ~a ~e tot~ mout of cl~ms p~d by ~e Stme is less ~ one ~ous~d six ..... . h~&ed sk~-seven doll,s ($1,667), ~e Ci~ sh~l pay ~e Consult~t a fixed fee of five h~&ed doll,s ($500). - ' ~e fee, w~ch ~ no. c~e-sh~l exceed ~e m~imm momt, is due M~ fo~ weeks of CiW receipt of reimb~semem ~0m ~e State. 4. Semfces and Materials to be Furnished by the Ci~ ..................... ~ C-0~S-~mi' ~fidi'~o~ihe gu)d-~ce to e"CiWhh dete~g ~e-d~ta req~ffired for cl~ sub~ssion. ~e Consulmt shall ~sme ~1 data so provided to be co=ect. ~e ............ CiW ~er a~e~s to:':-pr~yi~e ~l_-Spbcific~l~ requested di/~.'docmenmtion ~d --- ~omation to ~e Cons~mt in a timely m~er. Co~t~t shill m~e its best effo~ to ........ file Cl~s ~ a ~ely ~e? pmSu~t- to" scbP~ 'of Se~des~ - ConS~t~t sh~ not be liable for cl~s ~at c~ot be filed ~ a reset of ~adeq~te data or data provided ~ ~ ~fimely m~er. For purposes of this Agreement, data that is requested by the Consultant must be provided within ._three_ wee. ks__of....tl? _r_eq_ue~, .0_r_t~_ _ce .w_eeks priq_r_to the. filing deadline, ....... whictie-ve-r would come fzrst, to be deemed to have been received in a timely manner. It is the responsibility of the City to provide the Consultant with payment information upon receipt of disbur_ sements..from the State for any and all claims filed pursuant to this agreement? - .... -'ci/y of r>ubm - 2 - - June 1, 1999 5. Not Obligated to Third Parties .... _:_ . The City shall not be.obligated or liable hereunder to any party other than the Consultant. 8; The Consultant will assume all financial and statistical information provided to the Consultant by City employees or representatives is accurate and complete. Any subsequent disallowance of funds paid to the City under the claims for whatever reason is the sole responsibility of the City. Indirect Costs The cost claims to be submitted by the'Consult~t'i~a~;-consist of both d/rec~ and indirect co'ts. The Consultant mayeither utilize the ten percent (10%) indirect cost rate-alloWed by'the--State_ Controller or-calculate a higher rate if City recbrds support such a cal~ulation. .-The- Consultant by this Agreement is not required tO prepare a central service cost allocation plan or departmental indirect cost rate proposals for the City. Consultant Assistance if Audited If audited, the Consultant shall make workpapers and other records available to the State auditors. It' requested by the City, the Consultant shall provide assistance to the City in defending claims at the desk audit level if an audit results in a disallowance of at least twenty percent (20%) or seven hundred fifty dollars ($750), whichever is greater. .............. Reductions of less than twenty percent (20%) or seven, hun&ed fifty dollars ($750) shall not be contested by the Consultant. Nothing in this section or any part of this Ag-reement shall be construed to include Incorrect Reduction Claims preparation. 9. Insurance Consultant shall acquire and maintain appropriate general liability insurance, workers' compensation insurance,, automobile insurance, and professional liability insurance. 10. Changes The City may, from time to time, require changes in the scope of services of the Consultant to be performed hereunder. Such changes, which are mutually agreed upon by and between the_ City and the Consultant, shall be incorporated in written amendment to this'agreement. . ._ City of Dublin - 3 - June 1, 1999 ContractNumb r :. 99E-2~9 Termination of Agreement If, ~ough.~y ca~e,.~e Consult~t sh~! f~l ~0 ~lfil!.~a. timely~d proper m~er its Obifgafion ~de~ ~sa~eemem, ~e Ci~ sh~l'~ereUpon have ~e right· to retinae _~eement by giv~g ~aen no~ce to ~e Consult~t of such te~mion ~d speci~g · e effective date ~ereoL at le~t five (5) days before ~e effective date of such 12. City Contact Person The City designates the following individual as contact person for this contract: Name: OFFER IS MADE BY CONSULTANT By: ~ Date: June 1.1999 OFFER IS ACCEPTED BY CITY By: City Official Date: City of Dublin -4- .... Sun~ 1~ 1999